Aker BP to raise dividend as long as oil stays above $40 per barrel

By Nerijus Adomaitis

OSLO (Reuters) -Aker BP, Norway's second-largest listed oil company, will raise its dividend by 5% annually if the price of North Sea oil stays above $40 per barrel, it said on Wednesday while reporting first-quarter profits in line with expectations.

Brent crude dropped to a four-year low of around $60 per barrel this week from more than $80 in January as an OPEC+ decision to expedite output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain.

Aker BP on Wednesday announced a quarterly dividend of $0.63 per share and maintained its plan for paying $2.52 per share this year, up from $2.40 per share during 2024, corresponding to a 5% increase.

"We have an extremely robust balance sheet... Our ambition is very clear, we will continue to pay and grow our dividend by 5% per year as long as the oil price is above $40 per barrel," CEO Karl Johnny Hersvik told Reuters.

Brent oil rebounded slightly on Wednesday to trade at $63 per barrel as investors focused on U.S.-China trade talks and signs of lower U.S. production.

Aker BP reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.80 billion for January-March, up from $2.79 billion a year earlier, in line with the $2.78 billion expected in a poll of 18 analysts.

The company's Oslo-listed shares traded up 0.2% at 0838 GMT.

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik and Jan Harvey)